Company profile

Ticker
AEGN
Exchange
CEO
Charles R. Gordon
Employees
Incorporated in
Location
Fiscal year end
Former names
Insituform Technologies Inc
SEC CIK
IRS number
133032158

AEGN stock data

(
)

Calendar

2 Aug 19
25 Aug 19
31 Dec 19

News

Company financial data Financial data

Quarter (USD) Jun 19 Mar 19 Dec 18 Sep 18
Revenue 318.74M 276.9M 334M 339.68M
Net income -8.37M -4M -2.78M 141K
Diluted EPS -0.27 -0.13 -0.08 -0.01
Net profit margin -2.62% -1.44% -0.83% 0.04%
Operating income 459K -774K -1M 13.01M
Net change in cash -11.14M -21.05M 16.12M -6.87M
Cash on hand 51.34M 62.48M 83.53M 67.41M
Cost of revenue 251.3M 228.61M 272.3M 267.01M
Annual (USD) Dec 18 Dec 17 Dec 16 Dec 15
Revenue 1.33B 1.36B 1.22B 1.33B
Net income 2.93M -69.4M 29.45M -8.07M
Diluted EPS 0.09 -2.09 0.84 -0.22
Net profit margin 0.22% -5.11% 2.41% -0.60%
Operating income 29.65M -43.52M 50.79M 19.95M
Net change in cash -22.19M -23.78M -79.75M 34.29M
Cash on hand 83.53M 105.72M 129.5M 209.25M
Cost of revenue 1.07B 1.07B 967.99M 1.06B

Financial data from Aegion earnings reports

Financial report summary

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Risks
  • Our businesses face significant competition in the industries in which they operate.
  • Our business depends upon the maintenance of our proprietary technologies and information.
  • Our efforts to develop new products and services or enhance existing products and services involve substantial research, development and marketing expenses, and the resulting new or enhanced products or services may not generate sufficient revenues to justify such expenses.
  • Acquisitions and investments could result in operating difficulties, dilution and other harmful consequences that may adversely impact our business and results of operations.
  • We may be liable to complete the work of our joint venture partners under our joint venture arrangements.
  • Our backlog is an uncertain indicator of our future earnings.
  • The preparation of our consolidated financial statements requires us to make estimates and judgments, which are subject to an inherent degree of uncertainty and which may differ from actual results.
  • Our use of input measures to recognize revenue on construction, engineering and installation services could result in a reduction or reversal of previously recorded results.
  • We may experience cost overruns on our projects.
  • Our recognition of revenues from change orders, extra work or variations in the scope of work could be subject to reversal in future periods.
  • We may incur significant costs in providing services in excess of original project scope without having an approved change order.
  • Cyclical downturns in the mining, oil and natural gas industries, including a substantial or extended decline in the price of mined minerals, oil or natural gas, or in the oil field, refinery and mining services businesses, may have a material adverse effect on our financial condition or results of operations.
  • Our operations could be adversely impacted by the California Refinery Safety Law related to downstream work performed in California refineries.
  • Federal and state legislative and regulatory initiatives as well as governmental reviews relating to hydraulic fracturing could result in increased costs and additional operating restrictions or delays that could adversely affect our Corrosion Protection customers.
  • We may be subject to liabilities under environmental laws and regulations.
  • The effects of the Tax Cuts and Jobs Act on our business are still not fully known and could have an adverse effect on our business and financial condition.
  • A general downturn in U.S. and global economic conditions, specifically a downturn in the municipal bond market, or government disruptions, including government shutdowns, may reduce our business prospects and decrease our revenues and cash flows.
  • We conduct manufacturing, sales and distribution operations on a worldwide basis and are subject to a variety of risks associated with doing business outside the United States.
  • Operational disruptions caused by political instability and conflict in the Middle East, South America, Europe and Asia could adversely impact our current operations and plans of expansion in these regions.
  • Business operations could be adversely affected by terrorism.
  • We have international operations that are subject to foreign economic uncertainties and foreign currency fluctuation.
  • New tariffs and other trade restrictions may adversely affect our business and results of operations.
  • An inability to attract and retain qualified personnel, and in particular, engineers, estimators, project managers, line workers, skilled craft workers and other experienced professionals, could impact our ability to perform on our contracts, which could harm our business and impair our future revenues and profitability.
  • Our profitability could be negatively impacted if we are not able to maintain appropriate utilization of our workforce.
  • Our business may be adversely impacted by work stoppages, staffing shortages and other labor matters.
  • The revenues from the water and wastewater portion of our Infrastructure Solutions platform are substantially dependent on municipal government spending.
  • The loss of one or more of our significant customers could adversely affect us.
  • The execution of our growth strategy is dependent upon the continued availability of third-party financing arrangements for our customers.
  • A substantial portion of our raw materials is from a limited number of vendors, and we are subject to market fluctuations in the prices of certain commodities.
  • We may become involved in legal proceedings, which will increase our costs and, if adversely determined, could have a material effect on our financial condition, results of operations, cash flows and liquidity.
  • Extreme weather conditions may adversely affect our operations.
  • Certain of our facilities are located in regions that may be affected by natural disasters.
  • The actual timing, costs and benefits of the 2017 Restructuring may differ from those currently expected, which may reduce our operating results.
  • Divestitures and discontinued operations could negatively impact our business, and retained liabilities from businesses that we sell could adversely affect our financial results.
  • We may from time to time undertake internal reorganizations that may adversely impact our business and results of operations.
  • Changes in the industries within which we operate and market conditions could lead to charges related to discontinuances of certain of our businesses, asset impairment, workforce reductions or restructurings.
  • We may incur impairments to goodwill or long-lived assets.
  • We may be subject to information technology system failures, network disruptions, cybersecurity attacks and breaches in data security, which could disrupt our operations and could result in a loss of assets.
  • Increasing regulatory focus on privacy issues and expanding laws could expose us to increased liability.
  • We are subject to a number of restrictive debt covenants under our credit facility.
  • We occasionally access the financial markets to finance a portion of our working capital requirements and support our liquidity needs. Our ability to access these markets may be adversely affected by factors beyond our control and could negatively impact our ability to finance our operations, meet certain obligations or implement our operating strategy.
  • As a holding company, Aegion depends on its operating subsidiaries to meet its financial obligations.
  • The market price of our common stock is highly volatile and may result in investors selling shares of our common stock at a loss.
  • Future sales of our common stock or equity-linked securities in the public market could adversely affect the trading price of our common stock and our ability to raise funds in new stock offerings.
  • Provisions in our certificate of incorporation could make it more difficult for a third party to acquire us or could adversely affect the rights of holders of our common stock or the market price of our common stock.
  • We do not intend to pay cash dividends on our common stock in the foreseeable future.
Management Discussion
  • Revenues decreased $25.5 million, or 1.9%, to $1,333.6 million in 2018 compared to record revenues of $1,359.0 million in 2017. The decrease in revenues was due to a $62.4 million decrease in Corrosion Protection, driven by a $90.8 million decrease in revenues at our pipe coating and insulation operation, which completed a large deepwater project in 2017 and was sold during the third quarter of 2018. Also contributing to the decrease was an $8.0 million decrease in Infrastructure Solutions primarily as a result of lower CIPP contracting installation services activities in our North American and European operations. Partially offsetting these decreases was a $45.0 million increase in Energy Services mainly due to an increase in construction services activities and the successful completion of labor transitions at refineries to comply with labor laws in California.
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